What Is Ethereum Classic (ETC): Prices, Charts And Analysis

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What Is Ethereum Classic (ETC)?

ETC is an open-source computing platform, blockchain-based, decentralized, and also a cryptocurrency. It gives developers the chance to create and deploy smart contracts. Smart contracts are self-executing and autonomous code blocks that trigger some particular actions based on already defined conditions. 

The Ethereum Classic network has no permission, and this means that anyone can join and make transactions, so far they’ve got a crypto wallet that’s compatible. Because of a technical and ideological split in the Ethereum community, this crypto was created in 2016, and the split was after the popular DAO attack. 

 

How Ethereum Classic Started

With the use of smart contacts, one can possibly create a DAO (Decentralized Autonomous Organization) on Ethereum. This means that DAO’s decision-making and governance apparatus is codified and does not need the intervention of humans. 

Slock.it, a German startup, unveiled its DAO project right on Ethereum in 2016. The project is called “The DAO.” Even though this project was able to raise more than 150 million dollars in crowdfunding, its smart contract had a loophole that was exploited by hackers, and they stole 50 million dollars. For this fund to be restored, almost all users of Ethereum, including its founders, supported a huge project in the base protocol of blockchain or a hard fork. Because of this, a new Ethereum chain was formed. 

Nevertheless, a part of this community wasn’t part of the fork, deciding to instead remain by the Code is Law principle. Stating that blockchain can’t be altered according to the whims of humans, they stayed on the old chain then changed its name to Ethereum Classic (ETC).

The fact that ETC preserves the Ethereum blockchain old code the way it was until DAO attacked, ETH and ETC are just the same. For example, programmers can make use of the open-source code in developing and running their apps (decentralized applications). They’ll also be able to develop ERC-20 tokens for their apps. 

With that being said, ETC’s basic differentiating factor is the fact that it’s not compatible with the ETH blockchain’s updates. According to the definition, a hard fork is an update that’s incompatible with backward. By making some new rules, the new chain, alongside its users (nodes), is totally defaced from the primary chain. Thereby ETC, which is the primary chain, can’t access any updates that happen on ETH, which is the new chain. 

One might now ask of the need for Ethereum Classic then if one can’t update it. As stated earlier, ETC has a more ideological foundation compared to any other thing. Its greatest significance, or maybe relevance, is in preserving the unadulterated and original ETH code. This means that Ethereum Classic is like an unchained historical record of the ETH network. 

 

ETC — The Original Ether

Ethereum Classic’s native cryptocurrency can also be called Ether, and that leads to slight confusion. Nonetheless, their ticker symbols are what show the difference. While ETH is used to denote the new Ether, ETC is used to list Ethereum Classic. 

When it comes to functionalities, the two Ethers are similar. Finally, everything one can do with other cryptocurrencies is what they can do with ETC. 

What do you think about ETC? Let’s know in the comments section below.

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